Advertising Agencies Market is Expected to Grow to $890.80 Billion in 2031 at a CAGR of 10.0%

Advertising Agencies Market is Expected to Grow to $890.80 Billion in 2031 at a CAGR of 10.0%

According to a report by Altus Market Research titled, “Advertising Agencies Global Market 2022 Opportunities And Strategies To 2031: COVID-19 Impact And Recovery Including: By Mode: (Online Advertising And Offline Advertising); By Type: (TV, Digital; Radio, Print; Out-Of-Home (OOH) And Others)”, the global advertising agencies market reached a value of nearly $346,122.5 million in 2021, having increased at a compound annual growth rate (CAGR) of 3.6% since 2016, and is expected to grow at a CAGR of 9.8% to nearly $553,106.5 million by 2026. Also, the market is expected to grow to $890,809.0 million in 2031 at a CAGR of 10.0%.

Market Growth by Key Players:

The global advertising agencies market is fairly fragmented, with a large number of players. The top ten competitors in the market made up to 12.22% of the total market in 2021. Major players in the market include WPP plc, Dentsu Group Inc, Publicis Groupe SA, Omnicom Group Inc., and Hakuhodo DY Holdings Inc.

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Other Players Covered in the report

BlueFocus Communication Group, The Interpublic Group of Companies, Inc., Accenture Interactive, Havas, MDC Partners, 303 MullenLowe, ADA, Red search, Schbang, Medium rare content agency, King content, DDB Group, Wieden + Kennedy (Shanghai) Co. Ltd., Publicis (China) Group, Guangdong Advertising Co. Ltd, Lowe Shanghai, VCCP, Mediaplus Group (München Deutschland), Bartle Bogle Hegarty (BBH), The&Partnership, Braaxe, Saatchi & Saatchi, Admind Agency, BrainDonors, Brain Tank Marketing Agency, Zest Creations, Purple PR Ltd., Funktional and Subsign, Ogilvy, The O Group, Digital Silk, studiofilms, Ignite Social Media, The Bureau of Small Projects, OKD Marketing, Cundari, Giants & Gentlemen, Let’s Get Optimized, Social Media 55, Burrell Communications, Omnicom

Market Growth Drivers:

Growth in the historic period resulted from strong economic growth in emerging markets, rise of globalization, rising penetration of e-commerce, rising advertisement expenditure and rapid development in technology. Factors that negatively affected growth in the historic period were coronavirus pandemic, skilled workforce shortages, increased use of ad-blockers, volatile costs, security challenges and government regulations.

Going forward, rising urbanization, increasing adoption of 5G networks and internet of things (IoT) and increasing adoption of Internet of Things (IoT) will drive the growth. Factors that could hinder the growth of the advertising agencies market in the future include high costs and intense competition.

Market Growth by Segments:

The advertising agencies market is segmented by mode into online advertising and offline advertising. The online advertising market was the largest segment of the advertising agencies market segmented by mode, accounting for 55.9% of the total in 2021. Going forward, the online advertising segment is expected to be the fastest growing segment in the advertising agencies market, at a CAGR of 12.7% during 2021-2026.

The advertising agencies market is segmented by type into TV, digital, radio, print, out-of-home (OOH) and others. The digital market was the largest segment of the advertising agencies market segmented by type, accounting for 62.8% of the total in 2021. Going forward, the others segment is expected to be the fastest growing segment in the advertising agencies market, at a CAGR of 18.7% during 2021-2026.

Market Growth by End Users:

The advertising agencies market is segmented by end use industry into banking, financial service & insurance (BFSI), consumer goods and retail, government and public sector, IT and telecom, media and entertainment and others. The other end use industry market was the largest segment of the advertising agencies market segmented by end use industry, accounting for 35.6% of the total in 2021. Going forward, the media and entertainment segment is expected to be the fastest growing segment in the advertising agencies market, at a CAGR of 12.3% during 2021-2026.

Market Growth by Region:

Asia Pacific was the largest region in the global advertising agencies market, accounting for 37.8% of the total in 2021. It was followed by Western Europe, North America and then the other regions. Going forward, the fastest-growing regions in the advertising agencies market will be the Africa and South America, where growth will be at CAGRs of 14.1% and 13.0% respectively during 2021-2026. These will be followed by Middle East and Asia Pacific, where the markets are expected to grow at CAGRs of 12.2% and 11.1% respectively.

Future Investment Opportunities:

The top opportunities in the advertising agencies market segmented by mode will arise in the online advertising segment, which will gain $ 158,416.6 million of global annual sales by 2026.The top opportunities in the advertising agencies markets segmented by type will arise in the digital segment, which will gain $ 154,572.4 million of global annual sales by 2026. The top opportunities in the advertising agencies market segmented by end use industry will arise in the other end users industry segment, which will gain $ 69,417.4 million of global annual sales by 2026. The advertising agencies market size will gain the most in the China at $ 41,933.8 million.

Market: Trend-based Strategies

Market-trend-based strategies for the advertising agencies market include launch of artificial intelligence in advertising, rising storytelling concept, increased adoption of digitalization, growing demand for interactive advertising, augmented reality for advertising, and increase in advertising on streaming services. Player-adopted strategies in the advertising agencies market includes safe digital engagement by following strict compliances on online advertising through partnerships and collaborations, strengthening digital marketing business through acquisitions, providing data driven advertising solutions for clients and expanding business operations in other regions.

Growth Strategies by Altus Market Research for Companies in the Market:

To take advantage of the opportunities, Altus Market Research recommends the advertising agencies companies to focus on using artificial intelligence technology, invest in augmented reality, focus on interactive advertising, focus on advertising on streaming services, expand in emerging markets, scale up through collaborations, offer competitively priced services, offer performance-based pricing, leverage social media use to maximize reach, leverage technology to increase reach, continue to focus on B2B promotions, focus on customer reviews, build strategic relationships with large-scale end-users and focus on securing government contracts.